Real estate prices in India have shot up and business owners are looking at encashing a part of their home equity to fund a portion of their financial growth. This trend has emerged as a profitable flush because of higher home prices, need for low cost funds, and to fund investment activity. This option is increasingly being exercised primarily by small entrepreneurs who have limited access to other means for credit and they are taking the a loan against property(LAP) for this regard. Taking the cue, banks have started promoting their loan against property portfolio in a smarter manner. Till now, real estate was a hidden asset. People are realising that it can be leveraged to boost their business growth potential. After valuation of the property to be pledged, establishing the ownership rights and assessing the repayment capability , the loan is sanctioned to the prospective borrower. The loan amount and approval are also subject to the minimum market value of the property specified by the bank. Typically, the loan amount sanctioned could work out to 50-60 % of the pledged property’s market value (as determined by the bank). The loan amount can be used for any purpose, some banks encourage the borrowers to disclose the end-use . Speculative businesses are looked down upon for approval of loan against property(LAP). The loans can be repaid in the form of equated monthly installments (EMIs) and the repayment period could range from two years to 15 years. Payable interest rate on such loans are in the range of 12-15 % per annum. The banks offer lower rates due to the presence of a guarantee in the form of the borrower’s house, whereas personal loans do not entail any such security. Besides, loans against property (LAP)are offered for a longer repayment tenure, while personal loans are for shorter tenure repayment . Also, banks cannot sanction personal loans beyond a certain limit.